How to Be Wiser Using Your Credit Cards

how to be wiser using your credit cards

Instructions

1. The credit card companies that line up on campus to hand out credit card
   applications aren't there because they want to do you a favor by issuing you a credit card even though you may not have a job. They are there because having you and your fellow students committed to them at a
   young age is worth the millions of dollars in fees they pay your college, at your expense, to set up camp in the places where you hang out. Many colleges also get a percentage of every dollar you ever spend on credit cards you signed up for on campus.

2. If you carry a balance on your credit card, rewards cards like cash back or frequent flyer miles may cost you more than you'll gain in benefits because these cards have higher interest rates. Sign up for a rewards card only if you've proven your ability to pay off your balance every month, and consider the perks as a reward for your good behavior.

3. Think about why a credit card company would give a credit card to
   someone with no job and no (or very little) income. Either they think your parents will bail you out if you get into debt, or they think you'll become enslaved to credit card debt while you're young and inexperienced and they'll own you for life. Make them wrong on both counts. You'll graduate far ahead of your peers financially if you stay out of credit card debt.